Market Research Report
Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $278,277.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$39,612||$59,418||$79,224||$82,351||$85,602|
|Net Cash Flow||-$70,510||$39,612||$59,418||$79,224||$82,351||$342,407|
Startup costs are estimated as the larger of PYE and median income multiplied by the cost of living in the city. The positive cash flows in years 1 to 5 are estimated from the PYE. The first year is discounted by 50%, the second year is discounted by 75%, the fourth through tenth years are inflated according to a growth rate estimated from the GDP growth rate of the state. The profit margin is defaulted 10%. In year 5 a “terminal value” equal to the year 5 net operating income times three is added. The hurdle rate is defaulted to 15%. All values are net of taxes.
How is this opportunity calculated?
The following ten market factors are the most important determinants used to calculate the need for businesses of this type in Clarksville.
- median income
- July temperature
- August temperature
- gross rent
- population density
- land area
- house price
- business activity
- February temperature
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Brown Brown & Associates PC
309 Poston St Clarksville, TN 37040
1579 Fort Campbell Blvd Clarksville, TN 37042
Judd, Trey CPA
1054 Rossview Rd Clarksville, TN 37043
Suppliers & Service Providers Contact List
Free help for entrepreneurs
Our professionals can help you get your business going.
We can help with your business plan! We have expertise and datasets.
Get a great business loan today!
Get a business loan that suits your needs.
Get the business loan you need and want.
Access angel investors around the U.S.
Get Angels to invest in your business.
Access angel investment today!
About Clarksville and its Consumers
Clarksville is a city in and the county seat of Montgomery County, Tennessee, and the fifth-largest city in the state behind Memphis, Nashville, Knoxville, and Chattanooga, respectively. The city had a population of 132,957 at the 2010 census, and an estimated population of 142,519 in 2012. Clarksville is the fifth-fastest growing city in the nation, of cities with a population over 50,000. It is the principal central city of the Clarksville, TN-KY metropolitan statistical area, which consists of Montgomery andStewart counties, Tennessee; and Christian and Trigg counties, Kentucky. It is second-fastest-growing Metropolitan Statistical Area (MSA) in the nation. Clarksville is the home of Austin Peay State University; The Leaf-Chronicle, the oldest newspaper in Tennessee; and neighbor to the Fort Campbell, United States Army base. Site of the 101st Airborne Division (Air Assault), Fort Campbell is located approximately ten miles (16 km) from downtown Clarksville, straddling the Tennessee-Kentucky state line. It is officially Fort Campbell, Kentucky as the base U.S. Post Office is on the Kentucky side of the post. The majority of the acreage of Fort Campbell is within the state of Tennessee.
Clarksville is a city in and the county seat of Montgomery County, Tennessee, and the fifth-largest city in the state behind Memphis, Nashville, Knoxville, and Chattanooga, respectively. The city had a population of 132,957 at the 2010 census, and an estimated population of 142,519 in 2012. Clarksville is the fifth-fastest growing city in the nation, of cities with a population over 50,000. It...description source
Population Population (2012) 142,519 Population Density 1,460 ppl/sq mi Population Growth Rate 7.2% Median Income $42,237 Median Age 28.6 Unemployment 8.3% Family Household Percent 69.7% Avg. Household Size 2.6 Avg. House Price $135,900 Foreign Born 4.3% Married 30.0% Cost of Living 46.7%
Demographics White 59.6% Hispanic / Latino 9.8% Black / African American 23.1% Asian 2.2% Native American 0.6%
Market & Regulatory Conditions For Tennessee
Third parties rate Tennessee's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness B- Ease of starting a small business B Cost of hiring a new employee A Overall regulatory friendliness A- Friendliness of health and safety regulations B+ Friendliness of employment, labor, and hiring regulations A- Friendliness of tax code A Friendliness of licensing regulations A Friendliness of environmental regulations A- Friendliness of zoning regulations A Publicity of training programs A- Publicity of networking programs B+ Current economic health of small business 17th/50 Change in revenue over past 12 months 16th/50 Forecast of small business's future economic health 30th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 14th/50 Cost of Doing Business 13th/50 Economy 14th/50 Infrastructure 4th/50 Workforce 6th/50 Quality of life 50th/50 Technology and innovation 28th/50 Business friendliness 18th/50 Education 39th/50 Cost of living 9th/50 Access to capital 33th/50Source: CNBC (2014)
Tax Friendliness Tennessee Corporate Tax Rate 7.0% Avg Local Corporate Tax Rate in Tennessee 2.5% Avg Combined Corporate Tax Rate 9.5% Overall tax friendliness 15th/50 Corporate tax rank 15th/50 Individual income tax rank 8th/50 Sales tax rank 47th/50 Unemployment insurance tax rank 26th/50 Property tax rank 37th/50Source: Tax Foundation (2015)
Resources to Get Started
Now that you have a potential location and idea for your business, here is a list of helpful resources you may need to get started.